Donnan and Secretary, Department of Veterans’ Affairs (Veterans' entitlements)

The Administrative Appeals Tribunal considered a dispute between Mrs Donnan and the Secretary of the Department of Veterans' Affairs concerning the assessment of Mrs Donnan's assets for Aged Care purposes. The core of the disagreement related to whether certain properties, which had been the subject of sale contracts that were subsequently abandoned, should be included in the calculation of her assets.

The Tribunal was required to determine whether the abandonment of contracts for the sale of two properties constituted a "disposition of assets" for the purposes of the Aged Care Act 1997. If it did, the Tribunal also had to consider the period for which such a disposition would be relevant in asset assessments.

The Tribunal found that Mrs Donnan had disposed of assets to the value of $134,500 in July 2004. Applying the principles of the Aged Care Act, the Tribunal determined that the value of these deprived assets should not be taken into account in the assessment of Mrs Donnan's assets for Aged Care purposes. Consequently, the Tribunal set aside the decision under review and substituted a new decision, holding that the balance of monies owing from the sale of the two properties was not to be included in the asset assessment.